Weighed down by Gravity : UK Trade Policy after Brexit

Summary:

The UK’s effort to build new trade relations around the world after Brexit has been as successful as it could be, but the economic results were never going to fully live up to expectations. The usefulness of free trade agreements (FTAs) for services trade is limited, the UK’s geographic position will remain unchanged, and the UK still depends on EU supply chains. UK trade policy should continue to pursue FTAs to help promote growth, but the number of potential partners is rapidly diminishing, which will make new FTAs less important going forward. The UK will therefore have to turn to other venues to promote growth. The most obvious course would be to deepen relations with its most important trading partner: the EU. Ultimately, good trade policy always begins at home, with investment in infrastructure, research and training that allows companies to flourish. More than any FTAs, addressing the persistent lack of productivity growth and low levels of investment would help redress economic growth and boost British exports.

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